A board signatory is a person who is authorized to sign agreements and contracts for companies. They are authorized by a formal process, either in the founding documents of the company or through an approved board resolution. The authority they have and how it’s limited is clearly outlined in the resolution or document. This clarifies the situation both within the company and externally to business partners regarding who is legally authorized to bind the company to agreements.

The term “board signatory” is used to refer to a particular person who is responsible for approving major expenditures and key decisions for an organization, for example, purchasing new office equipment or signing a contract with a supplier. They could be charged with the negotiation of better terms or pricing on the procurement side. They are also likely to review and modify the contractual arrangements.

For the best possible outcomes organizations that give these powers must carefully evaluate and share their internal procedures to ensure that the authorized signers are aware of the organization’s https://creativetrance.com/why-data-security-should-be-a-priority-in-virtual-data-rooms/ objectives and goals. This knowledge helps them to make informed decisions about how they use their authority, and it minimizes the chance of illegal or conflicting actions. For example, it’s common for companies to have dual approval or permission procedures to limit the potential for misuse by ensuring that at least two people are able to review and approve actions prior to they take place.